Do Reorganization Costs Matter for Efficiency? Evidence from a Bankruptcy Reform in Colombia
The authors study the effect of reorganization costs on the efficiency of bankruptcy laws. They develop a simple model that predicts that in a regime with high costs, the law fails to achieve the efficient outcome of liquidating unviable businesses and reorganizing viable ones. The authors test the...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2006/07/6938466/reorganization-costs-matter-efficiency-evidence-bankruptcy-reform-colombia http://hdl.handle.net/10986/8375 |